Innovation

STRATEGIC MANAGEMENT CONCEPTUAL FRAMEWORK

What is Strategic Management ? Strategic Management can be defined as the art and science of : • formulating, • implementing, and • evaluating

competitive moves and business approaches that enable an organization to achieve its objectives.

The Strategy-Making, Strategy-Executing Process

Developing Developing A Strategic A Strategic vision vision

Setting Objectives

Crafting a Monitoring Strategy to Implementing developments, evaluating Achieve the and executing Objectives the strategy performance & making And vision corrective adjustments

Revise as needed in light of actual performance, changing conditions

SWOT Analysis
Environmental Scan

Internal Analysis

External Analysis

Strengths

Weaknesses

Opportunities

Threats

SWOT Matrix

External Environment Analysis
Aim is to identify : • Opportunity (Competitive possibilities) : a condition which will help a firm achieve strategic competitiveness. • Threat ( Potential constraints ) : a condition that may hinder a firm’s efforts to achieve strategic competitiveness.

BASIC ANALYTICAL TOOLS FOR EXTERNAL ENVIRONMENT ANALYSIS
PESTEL Analysis Degree of turbulence

Customer Analysis

Competitor Environment

Company / Public Sector Organization

Industry Life-Cycle

Cooperative Environment

Five Forces Analysis Source : Lynch

Internal Environment Analysis
Internal Environment Analysis includes :

• Recognizing what are, and what are not the firm’s core competencies. • Exploiting core competencies that will create value for customers.

Resources
Tangible Resources
Financial    The firm’s borrowing capacity Ability to generate internal funds Firm’s reporting structure and formal planning , controlling systems Location of a firm’s plant & equipment Access to raw materials

Intangible Resources  Knowledge Human
         Trust Managerial capabilities Organizational routines Ideas Scientific